Charter Gets Closer To Reorganization > heres another tidbit of info

heres another tidbit of info

Not making payment on bonds is usual done with creditor knowledge as a precursor to Ch 11 and a debt-equity swap.

The alternative is that Charter are completely and utterly boned, don't have the money to pay them, and didn't get an agreement from their bond holders, in which case they're boned

EDIT: NEW YORK, Dec 12 (Reuters) - Charter Communications Inc's bonds tumbled on Friday after the fourth-largest U.S. cable company said it has engaged Lazard LLC to initiate negotiations with its bondholders, as a means of increasing its financial flexibility.

Looks like not making the interest payment is a precursor to C.11 and the inevitable debt-equity swap, banks will be running out of patience and the company is nearly worth less than its' current debt obligations now:

NEW YORK, Dec 17 (Reuters) - Charter Communications Inc needs to radically overhaul its debt as it struggles with the cost of an increasingly insurmountable burden, and a reorganization of its obligations in bankruptcy is a possibility.

The fourth-largest U.S. cable company said on Friday it has engaged Lazard LLC to initiate negotiations with its bondholders as a means of increasing its financial flexibility. The news sent its bonds plunging, though they have since recovered most of the weakness. Charter (LSE: CHTR.L - news) 's 10.25 percent bond due 2010 dropped more than 8 cents to 30 cents on the dollar, before jumping back to 35 cents on Wednesday, according to MarketAxess. 'The company would not need to negotiate with bondholders if it could pull off another significant debt-for-debt swap, we think,' CreditSights analyst Jake Newman said in a report. 'So, it appears there is more going on under the surface.' Charter has undergone refinancings to extend the maturity of its debt every year since 2004 as it struggles with the cost of carrying a debt load that now stands at around $21 billion. Charter has been increasing revenues and gaining new subscribers, though the company's debt per subscriber has risen to over $4,000. This compares to a possible value of only around $2,400 per subscriber, if the company is valued at similar levels as competitor Time Warner Cable Inc (NYSE: TWC - news) , said CreditSights. 'Based on the $2,400 per subscriber valuation, banks are getting close to losing asset cover for their loans,' said CreditSights' Newman. 'If our speculation is true, that would suggest that Charter is finally running out of liquidity rope and needs a major restructuring of its bonds.' Charter's revenues rose 7.3 percent in the third quarter, while net customer additions increased more than 50 percent year over year, the company said in the release. However, 'even at the current revenue growth rate, Charter won't be able to grow into its capital structure,' Gimme Credit analyst Shelly Lombard said in a recent report. 'Charter is surviving by using debt exchanges to push back maturities,' she said. 'At some point Charter will need to restructure or sell a considerable amount of assets to avoid bankruptcy.'

It looks like Chapter 11 is just around the corner for Charter.. »www.businesswire.com/portal/site···sLang=en

Charter has not made intrest payments due January 15,2009. They have until Febuary 15th to make the payments or default will occur. (If they file, Paul Allens special class stock will be wiped out and he will not have control of the company anymore.)

»www.earthtimes.org/articles/show···54.shtml

filch downgraded charters debt again

also as a side note so many different debts and lians on charter that i dont think charter can easily nagtatie them all since they are owned by different ppl

some who would want charter to split up others who wouyld want charter to stay in one piece its gonna be a mess

charters debt is owned by tons of diffrent ppl many im sure would want diffren things from charter